Question

If General Motors divided its passenger vehicle, commercial truck, financing, and
aftermarket parts product lines into four self-contained operations under the GM
corporate structure, each of these would be considered a(n)

Answer 1

Each unit is a division.   A divisional structure can be market-based, product/service-based, or geographic.

• The purpose of the divisional structure is to ensure that each unit operates efficiently and profitably.

 

• Control goes to the divisional heads, who are accountable for achieving divisional outcomes set by the corporate headquarters.

 

• One feature of a divisional structure is that each division is well-equipped with corporate resources to achieve its objectives.

 

Thus, General Motors' corporate structure, in this instance, is considered a divisional organizational structure.

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